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Tertiary students will be able to work and travel in the United States for a year under an agreement signed yesterday, but student associations warned that travellers could end up in low-paid jobs while they were there.
The student work travel programme being piloted for two years extends the amount of time New Zealand students can spend in the US from four months to up to 12 months.
A US State Department spokes-woman said some detail was still to arrive from Washington but it was understood tertiary students of any age could apply.
New Zealand Union of Students' Associations co-president Josh Clark said it was a positive move, but questioned how many students could afford to go.
He said contrary to suggestions that earning US dollars paid student loans off quicker, many students would not come back financially better off.
"Our research has shown that students who do travel overseas and are working are usually spending that money on travelling. Or they're not in the profession that they'd like, they're in semi-skilled work."
Prime Minister Helen Clark said the extension would open up more opportunities.
She said it also went some way to reciprocating New Zealand's working holiday scheme for Americans.
Since 2004, US citizens between 18 and 30 have been able to work and study in New Zealand.
New Zealand Secretary of Foreign Affairs and Trade Simon Murdoch and US Assistant Secretary of State Chris Hill signed the agreement.
Mr Hill said the US had seen there was real demand for such an arrangement.
"We are really looking forward to seeing those kids in the US."
Working USA
* Tertiary students can apply to work and travel in the US for a year.
* There is no cap on the number who can take it up.
* It extends the time limit from the current four-month period.
* The scheme is effective immediately and is being tested for two years.